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Management · Q312

Managerial Economics

Graduate and Post Graduate · Management · question 312

Q312

Assume that a firm's total revenue curve takes the form of a straight line which passes through the origin. We may deduce that

A.
Total costs and total revenue are equal
B.
Price and marginal revenue are equal
Answer
C.
Price exceeds marginal revenue
D.
Elasticity of demand for the product is unity

Answer: Option B

Solution

Answer: Option B
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